Background of the TikTok Agreement
In a recent development, the United States has made progress in resolving the long-standing issue surrounding TikTok. According to US Treasury Secretary Scott Bessent, China has approved the transfer agreement for the short video app. He mentioned that this approval is expected to move forward in the coming weeks and months, although no further details were provided.
This statement was made during an interview with Fox Business Network’s “Mornings with Maria,” following President Donald Trump's meeting with Chinese leader Xi Jinping. The discussions took place in Kuala Lumpur, where the TikTok agreement was finalized in terms of securing Chinese approval.
China's Response
The Chinese commerce ministry released a statement earlier on Thursday, indicating that the country would properly handle TikTok-related issues with the United States. A Chinese spokesperson emphasized that the Chinese side will work with the US side to address these issues effectively.
TikTok, which is owned by ByteDance, did not immediately respond to requests for comment. However, the situation surrounding the app has been a point of concern for over 18 months.
Legal Framework and Timeline
The uncertainty surrounding the app, which is used by 170 million Americans, began after the US Congress passed a law in 2024. This law mandated that TikTok’s Chinese owners sell the app’s US assets by January 2025.
In response, Trump signed an executive order on September 25, declaring that the plan to sell TikTok’s US operations to a consortium of US and global investors meets the national security requirements set out in the 2024 law. The order gave the consortium 120 days to complete the transaction and delayed enforcement of the law until January 20, 2026.
Key Provisions of the Agreement
The agreement on TikTok’s US operations includes several key provisions. One of the most significant is the appointment of one of seven board members for the new entity by ByteDance, with Americans holding the remaining six seats. Additionally, ByteDance would hold less than 20% in TikTok US to comply with the requirements set out in the law.
According to the executive order, the algorithm will be retrained and monitored by the US company’s security partners. The operation of the algorithm will be under the control of the new joint venture.
Concerns from US Representatives
Despite the progress, there are still concerns from some US representatives. US Representative John Moolenaar, the Republican chair of the House Select Committee on China, expressed concerns this month about a licensing agreement for the use of the TikTok algorithm as part of the deal by ByteDance to sell its US assets. He described it as raising "serious concerns."
Conclusion
As the situation continues to unfold, the resolution of the TikTok issue remains a critical topic for both the United States and China. The approval from China marks a significant step forward, but the details of the agreement and its implications for national security will continue to be closely watched. The coming weeks and months will be crucial in determining the future of TikTok in the US market.